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Sh11bn Devki iron ore plant shines a ray of hope in Taita Taveta
President William Ruto (right) and Narendra Raval, Executive Chairman of the Devki Group of Companies, during the commissioning of the Sh11 billion Devki Iron Ore Pelletisation Plant at Manga in Taita-Taveta County on December 3, 2024.
The launch of a Sh11 billion iron ore processing plant in Manga, Voi, Taita Taveta County by the Devki Group of Companies is expected to boost development in the region.
The project, whose groundbreaking ceremony was attended by President William Ruto on Tuesday, promises to bring jobs to the county which has been lagging in terms of industrialisation since independence.
Devki, owned by Kenyan billionaire Narendra Raval, is expected to create about 3,000 jobs after the first phase is completed in the next six months and more than 14,000 once the plant is fully operational.
The plant, which will be used to boost local iron ore processing and value addition, adds to several companies in the group, including a steel processing plant in Samburu, a Camtech clinker factory in West Pokot and Simba Cement in Kilifi.
President Ruto said the factory will reduce imports of iron and steel products, which amounted to Sh120 billion in 2023, while exports were valued at Sh32 billion.
“The investment we are launching today is a significant step to address this imbalance by boosting local production and enhancing value addition,” Dr Ruto said.
The Devki Iron Ore Pelletisation Plant sits on a 2024 hectares piece of land, which is close to the iron-ore-rich Kishushe area.
Kishushe area holds great potential in mining and mineral processing due to the large deposits which can be mined in the next 50 years.
Trade Cabinet Secretary Salim Mvurya stated that the plant's operations will enable iron ore miners to access markets because the processing will be done in the country.
Sh11 billion
“The project will cost about Sh11 billion. In the first phase, 3,000 Kenyans will get jobs at the factory, and upon completion, about 14,000 will be employed by this factory," said Mr Mvurya.
Mr Raval said the new project marks a milestone not only for the Devki Group but also for the community.
“The plant will promote artisanal miners by providing them with equipment to boost production and supply the facility with adequate raw materials. Beyond this, the factory promises to generate thousands of jobs for the residents, sparking new economic activity and uplifting families in the region," said Mr Raval.
"By 2030, I want to employ over 30,000 people directly in my companies. In this factory, I have directed the contractor to ensure 80 percent of the jobs are given to locals," he said.
Governor Andrew Mwadime lauded the investment, noting that Taita Taveta County is endowed with vast quantities of iron ore and other minerals.
He said that the new plant would spur economic growth in the region and create jobs for the locals.
He said the county is endowed with vast quartz, copper and graphite minerals which could attract investors.
"I urge the national government to bring us the investors, we are ready to give the land for the factories. It will help both the county and national government to get revenue," he said.
Spur economic growth
Taita Taveta has deposits of gemstones such as tsavorite, ruby, chrome tourmaline, yellow tourmaline, red garnets, green garnets and tanzanite. Other minerals are manganese, iron ore, marble, limestone and quartz.
During the ceremony, President Ruto highlighted the government's efforts to create a conducive environment for investors to spur economic growth.
He reiterated that the Vision 2030 economic pillar, which aims for a 10 percent annual economic growth rate as a minimum threshold for fulfilling the country's development agenda with the manufacturing sector, identified as a key contributor, is expected to play a significant role in this growth.
The President noted that the manufacturing industry is the second-largest employer in the country, providing direct employment to 360,000 Kenyans and indirectly supporting thousands of livelihoods.
"We want to increase the manufacturing contribution to 15 percent by 2027 and 20 percent by 2030. We will ensure that we provide an enabling business environment by offering incentives and institutional support for investors to realise the immense potential that exists in our economy," he stated.
He also announced plans to create and expand special economic zones, export processing zones, and industrial parks to boost industrial growth.
President Ruto urged Kenyans to invest in the country.